BAE Systems in talks over merger with Airbus

BAE Systems has sites in Bristol and Yeovil Credit: ITV West

Defence contractor BAE Systems has confirmed it's in talks over a potential merger with the parent company of Bristol-based Airbus.

The firm, which has sites in Filton and Yeovil, says combining businesses with European Aeronautic, Defence & Space (EADS) would create the world's biggest aerospace and defence company.

BAE Systems has sites in Bristol and Yeovil Credit: ITV Westcountry

BAE says it's too early to confirm whether there would be any job losses, but says around 48,000 people in the UK would be employed if the companies merge.